Why Your Company Should Outsource Data Entry Jobs

Data entry is a tedious task requiring keen attention to detail. Companies often hire data entry outsourcing services to boost efficiency, reduce costs, and focus on their core competencies—all while ensuring accurate, complete, and up-to-date data.
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Data entry is a tedious task requiring keen attention to detail. Companies often hire data entry outsourcing services to boost efficiency, reduce costs, and focus on their core competencies—all while ensuring accurate, complete, and up-to-date data. 

If you want to outsource data entry jobs but are clueless about how to begin, you have come to the right place. This article explores the reasons outsourcing these tasks can benefit your business. 

So keep reading to find out!

What Is Data Entry Outsourcing?

What Is Data Entry Outsourcing

If you are already familiar with outsourcing, you might wonder, “What is business process outsourcing (BPO), and how does it differ from data entry outsourcing?”

In short, data entry outsourcing falls under BPO’s umbrella. BPO is the practice of outsourcing non-core tasks to third-party service providers instead of handling them in-house. Meanwhile, outsourcing data entry entails hiring a provider to perform data entry functions. Both services allow client companies to focus on their core operations while maximizing other potential benefits.

Data entry is a commonly outsourced process. It involves entering data from various sources into a computer system or database. Information sources include independent research, surveys, customer feedback, invoices, and purchase orders.

According to Research and Markets, the data-entry outsourcing services market could grow by $552.63 million from 2022 to 2026 at a compound annual growth rate (CAGR) of 6.1% during the forecast period. The market’s need for the following drives this growth: 

  • Cost-efficient solutions
  • Core business as the primary focus
  • Better access to expert vendors in the field

Further, the industries that capitalize on data entry outsourcing include the following:

  • Banking, financial services, and insurance (BFSI)
  • Information technology (IT) and telecommunications
  • Manufacturing
  • Healthcare

Businesses wanting to outsource data entry jobs can learn more about the specific roles they can delegate in the next section.

Types of Data Entry Jobs

Data entry requires a high level of attention to detail and accuracy. It also demands proficiency in using computers and encoding information. While this function is time-consuming, it is vital for maintaining accurate records and making informed business decisions. 

The demand for accurate and efficient information management has significantly grown. Wanting to outsource data entry jobs is a common sentiment among businesses in various industries, from healthcare and finance to retail and e-commerce. These companies choose to outsource data entry services due to their many benefits.

The following are a few examples of outsourced data entry jobs:

  • Data encoding is typing information into a computer using a particular format. It involves converting handwritten notes into digital form or software data from one program to another.
  • Data capturing and entering are the collection of data from various sources. This information can come from customer requests, feedback forms, and supplier invoices. Third-party agents enter the data into a computer system once received via phone calls, email, or live chat.
  • Data cleaning is identifying errors and making the necessary corrections. For instance, third-party agents correct misspelled words, remove duplicate entries, and endorse entries for fact-checking. This task is vital for ensuring data accuracy and reliability.
  • Data formatting involves sorting and organizing information in a way that is easy to read and understand. The task includes formatting tables, graphs, and other visual aids to help clearly and concisely present the data.
  • Online form filling is what the name suggests. Agents fill out online forms, such as contact and order forms, on behalf of a company. This task should be on your list if you want to outsource data entry jobs.
  • An online survey is a proven-and-tested method for collecting data from customers or employees. Third-party representatives are then responsible for entering the survey responses into a computer system for data analysis and survey reporting.
  • Email processing involves organizing and entering email information into a computer system. For instance, representatives enter customer orders received via email and forward them to the proper department for processing.
  • File conversion is converting files from image to text or audio to text. For example, data entry specialists rewrite screenshots of long paragraphs into a Word document or listen to audio files and reproduce them into text.
  • Medical transcription entails transcribing medical dictation from healthcare professionals into a written document. It requires a high level of accuracy and knowledge of medical terminologies. This task is one of the most commonly outsourced functions in the healthcare industry.
  • Medical coding involves assigning codes to medical diagnoses and procedures for insurance billing. These codes include the Healthcare Common Procedure Coding System (HCPCS), International Classification of Diseases (ICD), and Current Procedural Terminology (CPT). This function requires knowledge of medical terminology and coding systems.
  • Product entry involves entering product information such as descriptions and prices. It is one of the most commonly outsourced functions in the e-commerce industry. This task should be on your list if you want to outsource data entry jobs for your online business.
  • Payroll entry involves entering data related to employee pay, such as hours worked and wages earned, into a computer database. As this task involves employee salaries, it requires high accuracy and attention to detail.
  • Bookkeeping entails maintaining the financial records of a company. It is part of the accounting services focused on recording all financial transactions, whether income or expenses.

Why You Should Outsource Data Entry Jobs

Why You Should Outsource Data Entry Jobs_2142746197

Outsourcing proves beneficial in multiple ways. According to a StatInvestor survey, 59% of business leaders outsource to reduce costs. Other top outsourcing drivers include the following:

  • Focusing on core functions (57%) 
  • Solving capacity issues (47%)
  • Improving overall service (31%)
  • Accessing expertise (29%)

These are just a few reasons why businesses outsource data entry. They also delegate these jobs to external vendors to prioritize their core operations, tap into experts, ensure sufficient workers, and improve overall service. However, there is more to these benefits than meets the eye.

If you want to outsource data entry jobs, consider the reasons below.

1. Reduce Business Expenditures

Outsourcing data entry jobs can help reduce business expenditures. First, it is more affordable to offshore data entry to Asian countries due to cheaper labor expenses. You also need not worry about hiring and training costs when hiring an offshore outsourcing company. 

Additionally, outsourcing eliminates the need to invest in infrastructure, equipment, and other resources. You just pay a set service fee regularly, depending on the terms of your agreement with the service provider. If you want to outsource data entry jobs, capitalize on their cost-saving benefits.

2. Prioritize Core Competencies

Companies exist to make money and grow over time. As such, businesses should prioritize revenue-generating activities. Spending too much time handling non-core tasks makes you lose focus on your core operations, potentially compromising your income.  

Outsourcing data entry jobs enables your employees to focus on their primary responsibilities, which leads to increased productivity. This allows them to devote more time and resources to revenue-generating activities that can contribute to your overall success.

3. Access Automated Tools

Data entry tasks are already tedious; what more if done manually? Manual work affects efficiency and ultimately leads to inaccuracy. That is why businesses leverage technology for data accuracy and overall efficiency.

Outsourcing gives you access to automated tools that help accelerate data entry processes and allow agents to double-check information for accuracy. These tools also provide insights based on patterns and trends vital for analysis and reporting. If you want to outsource data entry jobs, opt for a provider using software automation.

4. Establish Quality Control

Data entry is a critical task that requires accuracy and precision. Even minor errors can lead to significant consequences, such as financial losses, legal issues, and reputational damage. Avoid this issue by outsourcing to a reputable vendor that can help you establish a quality assurance (QA) team.

A reliable outsourcing provider usually has a quality control process in place. Aside from data entry, the process involves double verification, validation, and error correction. These tasks help ensure the entered data is accurate and consistent, reducing margins of error and potential discrepancies. 

5. Improve Data Accuracy

Data accuracy is critical for business reporting, decision-making, and regulatory compliance. Data entry errors can lead to incorrect information, resulting in inaccurate reporting, poor decisions, and legal issues.

Outsourcing data entry jobs to a service provider guarantees accuracy. A reliable BPO company employs an experienced workforce, advanced technology, and quality control procedures. If you want to outsource data entry jobs, you can capitalize on these factors for improved data accuracy.

6. Increase Process Efficiency

Data entry is a tedious and laborious task that requires efficiency. For instance, you are running an e-commerce business and must enter customer information and order requests. You must then expedite the data entry process so that it does not affect your order fulfillment, inventory management outsourcing, and product shipping operations.

Outsourcing to a reliable BPO provider accelerates your business process. A service provider specializing in data entry has the experience and expertise to streamline the process. As such, your hired contractor can help improve your service efficiency, performance, and customer satisfaction.

7. Boost Business Productivity

Businesses of all sizes deal with massive amounts of data daily, affecting various business processes. You need a solid data entry team to improve overall business productivity.

A reliable outsourcing firm can provide timely and accurate data entry services. Your BPO partner can offer 24/7 availability and efficiency. So examine your current production if you want to outsource data entry jobs. 

8. Increase Customer Satisfaction

Businesses exist to serve their most important stakeholders—customers. However, 90% of service teams would agree that today’s customers have higher expectations than ever before. Service efficiency, quality control, and data accuracy make customers happier and more satisfied with the services they receive.

A reliable outsourcing provider can improve your service quality and overall efficiency. Better data accuracy can also help your business avoid complaints and legal ramifications. Outsourcing data entry jobs to a BPO team can help you improve your customers’ experiences and meet their expectations, translating to high customer satisfaction.

9. Guarantee Job Satisfaction

Data entry impacts customers and employees alike. This business function can be monotonous, leading to stress, burnout, and dissatisfaction. It leaves workers feeling unfulfilled, which affects their physical and mental health.

Outsourcing companies offer a solution to this problem by ensuring job satisfaction. By outsourcing data entry to a dedicated team, your employees can focus on their primary responsibilities with less stress, contributing to a healthier and happier workplace.

10. Ensure Data Privacy and Security

Data privacy and security are critical concerns for businesses today. According to Statista, the United States had 1,802 cases of compromised data in 2022. More than 422 million individuals were affected by information breaches, leakage, and exposure. You can compromise sensitive data if you do not have proper security measures and privacy policies.

A reputable service provider can keep your data secure and confidential. It can help you comply with laws and regulations such as the General Data Protection Regulation (GDPR) and the Health Insurance Portability and Accountability Act of 1996 (HIPAA). So if you want to outsource data entry jobs, factor in your prospective provider’s network security and data privacy measures before signing a contract. 

11. Gain a Competitive Advantage

Data can be your best ally for uncovering your competitors’ winning strategies. While a competitor is unlikely to willingly disclose their secrets, tools such as Capture can help you collect valuable information via the web. According to Emerald Insights, 90% of Fortune 500 companies use competitive intelligence to inform their decision-making.

An outsourcing provider with such technology can assist you in analyzing your competitors’ sales and marketing performance records. These insights allow you to identify trends and make informed decisions about your own strategies. With access to this information, you can stay ahead of the competition.

12. Have Flexible and Scalable Operations

Outsourcing offers businesses flexibility and scalability. Depending on your agreement with a service provider, you can have a flexible contract and scale your business up or down as needed. An outsourcing provider can offer customized solutions best suited to your business needs.

For instance, your BPO partner can supply additional workers during peak months and maintain a lower headcount during regular seasons. But how do you choose a data entry outsourcing partner? Work with a flexible service provider, negotiate terms, and draft a contract with favorable terms for both parties.

How To Get Started With Data Entry Outsourcing

How To Get Started With Data Entry Outsourcing

Now you know the benefits of outsourcing data entry. Getting started with this strategy, however, can be challenging.

Understanding your data entry needs, choosing the right service provider, and monitoring your performance are steps toward achieving a successful outsourcing engagement. If you want to outsource data entry jobs, follow our crucial tips below.

  • Define your data entry needs: Examine your business operations to see which tedious and mundane tasks you can outsource. Are there typing, transcription, or bookkeeping jobs you should outsource? Once you have determined your outsourced tasks, set your requirements, such as the volume and format of the data to handle. 
  • Identify potential outsourcing partners: Search for providers via the internet through business websites or online directories. You can also get recommendations from other professionals and companies outsourcing their data entry jobs. Create a list of prospects specializing in such services.
  • Evaluate prospective outsourcing partners: Screen your prospects and select the right BPO partner. Consider critical factors such as experience, expertise, data accuracy, service efficiency, resources, pricing, and reputation. Pick a provider best suited for your business requirements and budget.
  • Set clear expectations and guidelines: After selecting a BPO partner, you can now negotiate with them. Create a service-level agreement (SLA) that sets expectations and outlines key guidelines. This legally binding contract should include the operational objectives, key metrics, work scope, processes and protocols, and specific instructions.
  • Kick off your BPO operation: It is time to formally launch your outsourcing operation. An SLA helps your outsourcing partner establish procedures according to your wishes. Conduct a pilot run before the launch to ensure everything goes as smoothly as possible.
  • Monitor operations and provide feedback: Your data entry outsourcing project continues after its formal launch. Now that it is running, measure your BPO partner’s performance and track its progress. Make changes for improvement when necessary. That ultimately helps you achieve outsourcing success.

Following these tips can ensure a successful data entry outsourcing project. Your BPO partner helps you save time and resources, ensure data accuracy, and improve efficiency.

The Bottom Line

Why Your Business Benefits from Outsourcing Data Entry Tasks

Outsourcing data entry jobs can be a smart move for your business. Partnering with a BPO firm provides several benefits, from reducing costs and increasing efficiency to gaining business flexibility and scalability. 

To delve deeper into the advantages of outsourcing data entry, consider exploring our recent article on the 20 Best Data Entry Service Providers. If you’re considering outsourcing, learn what it entails and what tasks to delegate to a third party. More importantly, follow our practical steps and choose the right service provider according to your business needs and budget. 

These insights help maximize your data entry outsourcing and take your business to the next level!


Looking to lighten your data entry burden and boost your overall productivity? Unity Communications has got you covered! 

We provide reliable and experienced support across various industries. Additionally, we allow your employees to focus on what they do best while we streamline your data entry operations for quality and accuracy.

Contact us today to discover how our outsourcing services can elevate your business to the next level!

Dion Jay Tality
Dion Jay Tality is a content writer and one of the creative forces behind Unity Connect’s blog posts and marketing copy. Before joining Unity Communications, he spent over five years in the BPO industry, wearing various hats—from being a CSR and email and chat support specialist to being an SME and QA analyst. Name it; he tried it! Passionate about writing, Dion loves to bring ideas to life through the power of words. When he’s not busy crafting content, you might find him working out, enjoying mindful walking, exploring conspiracy theories, or singing at the top of his lungs.
Dion Jay Tality

Dion Jay Tality

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